VnC Cocktails, makers of Disick drink, in final death throes
By Fiona Rotherham
Sept. 10 (BusinessDesk) - New Zealand shake and pour cocktails company VnC Cocktails has gone into liquidation after failed attempts to sell it.
The company went into voluntary administration on June 30, was then tipped into receivership a few days later by secured charge holder Bank of New Zealand, and has now been put into liquidation following a creditors' vote this month.
VnC Cocktails hit the headlines in 2011 when it was named on reality television show 'Keeping up with the Kardashians' as the drink of choice by Kourtney Kardashian's husband Scott Disick, a brand ambassador the company.
The final report from administrators Paul Sargison and Simon Dalton, who have now been appointed liquidators, said while a sale of the group had been negotiated, it had not yet settled and would not see the first security holder fully repaid. Little or no funds will be available to other creditors, it said.
Other subsidiaries also placed in liquidation include Hydr8, Sejuice Wine and VnC Manufacturing.
The VnC Cocktails Group was founded in 2007 by Shane McKillen, one of the original investors in 42 Below Vodka. He also made millions as a part-owner of Empower when it was sold in 2000.
The administrators said that with significant capital injections, the group bought a factory and developed a number of non-alcoholic and alcoholic drinks. But distribution networks failed to fully perform and the group was put up for sale prior to going into voluntary administration. VnC Cocktails issued a number of redeemable preference shares which were due to be repaid on June 30 and one shareholder refused to allow an extension.
The administrators report said VnC Cocktail's secured creditors were owed just over $17 million and unsecured creditors some $2.4 million. The estimated deficit from that company alone was $8 million, excluding the costs of administration and liquidation. The holding company's assets included $7 million of related party lending.
Administration fees for VML, Hydr8, and Sejuice total more than $38,000 in the latest report.
VnC Cocktails had 12 shareholders, The majority owner was Collinsville Ltd of which McKillan was a director and part-owner and he also owned another 14.8 per cent stake. Another significant shareholder was Collins Asset Management, which was directed and part-owned by Timothy Cook. He resigned as a director of VnC in June. Fund manager Warren Couillault also held two stakes totalling about 11 per cent.